So as regular readers know, I've been having some problems with the IRS lately. At first they said they'd never received my 2006 tax returns (in spite of the fact that they cashed my check on April 16, in what has to be the only display of government efficiency I've ever witnessed), and then later told me that I needed to fill out some form dealing with income and expenses from my rental properties (despite the fact that I've...err, never owned any).

...and sent me a check for $144 and change that they appear to believe I've overpaid.

I'm holding off on the celebration, though. Next month, I'm certain I'll receive a letter from them saying "You know that check we just sent you? We'd like it back now, kthx. With interest." Because, I don't know, they'll think i didn't properly itemize my deductions from expenses incurred while invading France or something.

I knew my taxes were complicated, but apparently they're too complicated even for the IRS to figure out.

My wife is a Canadian CGA who also does US taxes.I've heard lots of horror stories about both the IRS and the CRA. Mostly similar to yours where the facts don't mean squat to the bureaucrat handling the account.